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Next: Simulations Up: Nelson and Winter (1982) Previous: Presentation of the model

Some properties

Technical progress drives the investment and hence the capital stock and supply.

If this progress stops, the industry converges to a Cournot equilibrium given the vector of productivities.

In this equilibrium all firms have positive profits.

The non-stationary nature of the system comes mainly from the imitation process which modifies continuously the transition probabilities of the system.


next up previous
Next: Simulations Up: Nelson and Winter (1982) Previous: Presentation of the model
yildi 2001-01-16